UNIT 4
Momentum / RSI
RSI compares recent upward and downward price movement on a bounded scale.
RSI70Context required
Momentum strength and possible exhaustion in context.
- Comparing swing strength
- Spotting divergence for investigation
- Can stay extreme
- Is derived entirely from price
Selling only because RSI crossed 70.
Threshold performance varies by asset, trend, lookback, and test design.
60-SECOND CHEAT SHEET
Remember this.
- 1>70 = strong recent momentum
- 2Extreme ≠ reversal
- 3Structure still matters